Estate of Koester v. Hale

211 N.W.2d 778, 297 Minn. 387, 1973 Minn. LEXIS 1104
CourtSupreme Court of Minnesota
DecidedOctober 19, 1973
Docket43888
StatusPublished
Cited by7 cases

This text of 211 N.W.2d 778 (Estate of Koester v. Hale) is published on Counsel Stack Legal Research, covering Supreme Court of Minnesota primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Estate of Koester v. Hale, 211 N.W.2d 778, 297 Minn. 387, 1973 Minn. LEXIS 1104 (Mich. 1973).

Opinion

Rogosheske, Justice.

These proceedings involve the title to 10 acres of rural land, which will be here referred to as the “disputed tract,” title to which was registered in 1951 pursuant to Minn. St. c. 508 by one of defendant Maxine B. Hale’s predecessors in title. The first proceeding was an application to vacate and set aside the order and decree of title registration; the second was an action seeking to impress a trust in favor of the plaintiffs upon the disputed tract and to require defendants to convey the tract to plaintiffs or in the alternative to recover damages in the event plaintiffs suffered a loss of the title to the tract. The proceedings were consolidated for trial, and upon making findings of fact and conclusions of law, the district court denied plaintiffs the right to reopen the original title registration proceeding, but impressed a constructive trust upon the disputed tract in favor of plaintiffs and ordered the registrar of titles to cancel defendant Maxine B. Hale’s certificate of title and issue a new certificate deleting from it the disputed tract. We affirm.

The disputed tract was originally acquired by James and Laura Gill in 1946 as part of a larger tract purchased from the State of Minnesota. In 1950, the Gills conveyed part of this land, but not the disputed tract, to Endre B. Anderson. Anderson mortgaged the lands so acquired, known as Heath Park Farm, to Lutheran Brotherhood. Subsequently, on March 27, 1951, Anderson filed an application to register all of the lands he had acquired, and by a mistake on the part of his attorney and of the examiner of titles, the disputed tract was included in the registration proceedings. The Gills, after their purchase of the disputed tract, remained in continuous possession until the death of James Gill in 1952. Thereafter, Laura Gill and her son, plaintiff Robert Gill, remained in possession. In 1959 she and Walter Koester, her second husband, entered a contract for deed with Robert Gill and Joyce, his wife, who continued in possession. *390 Such possession was open, continuous, and undisputed from the time James and Laura Gill acquired the tract to the date of trial. The disputed tract was fenced on the north as a part of their farm; they paid taxes on it throughout the years and used it regularly for the pasture of livestock. The fence erected by the Gills and regarded as the boundary line was replaced in 1952 with a more substantial woven wire fence by Anderson. This fence was kept in constant repair by the Gills and the Andersons and their successors in title from the time of its construction to the date of trial. Robert Gill testified that the original purpose of the fence was to divide his father’s land from those parcels which his father sold.

In Anderson’s application to register his lands, erroneously including the disputed tract, only Lutheran Brotherhood and one Lawrence King, who then occupied the Heath Park Farm, were listed as persons who appeared of record or who were known to the applicant to claim any right, title, estate, lien, or interest in the land described in the application. Following that, the names of James Gill and Laura Gill and three others were listed under a provision on the form reading “Names and addresses of the owners of adjoining lands affected by settling or establishing boundary lines.” After the filing of the application, the Rice County examiner of titles also erroneously reported that the lands described in the application were owned by Endre B. Anderson and stated that James Gill and Laura Gill as owners of the adjoining lands should be made defendants.

Although the printed form of application included appropriate language for a request to fix the boundary lines of the land to be registered, as authorized by Minn. St. 508.06(H), 1 it seems apparent to us, as indicated by the testimony of the attorney rep *391 resenting Anderson, that the Gills were named in the application for that purpose and not because Anderson was asserting any claim of right or interest in the disputed tract. In fact, neither he nor any of his successors in title except defendants to this action have ever asserted any such claim. The record indicates that the attorney representing Anderson personally served the summons on the Gills and that for years he regarded the Gills as clients of his law office. It seems obvious, although not specifically found by the court, that the attorney included the Gills and served them with notice as adjoining owners merely in response to the printed form even though there apparently was no desire to fix boundary lines, since no survey was made and no description of judicial landmarks was included in the decree of registration. It is undisputed that the Gills made no appearance in the proceeding, and the order and decree of registration was entered November 27, 1951, by default.

Title to the land described in the certificate of title, including the disputed tract, was subsequently transferred to numerous persons, none of whom ever claimed the disputed tract or exhibited any knowledge that it was included in the certificate of title until its erroneous inclusion was discovered in 1969 during probate of the estate of Laura Gill. In 1967, Leonard and Oselia Blom purchased the property which Anderson originally had purchased from the Gills. In 1968, the Bloms’ daughter, defendant Maxine Blom Hale, bought a small portion of her parents’ property, including the disputed tract. She testified that she and her husband bought the land because they believed the site was ideal for the home they were planning. It is clear from the record that Mrs. Hale was under the impression that they were merely purchasing a scenic knoll north of the disputed 10-acre tract. Mrs. Hale testified that she and her husband were “unbelievably unconcerned about the number of acres” and that they “wanted the knoll, and that was it.” She also testified that, prior to their purchase, they were fully aware of the existence of the fence.

The knoll property was appraised at $8,000 by a real estate *392 broker employed by Mrs. Hale’s father. The same appraiser at trial valued the disputed 10-acre tract at $10,000. Mrs. Hale testified at trial that she paid $8,000 for the land purchased from her parents.

Upon discovering that the disputed tract had been included in Anderson’s certificate of title and in Mrs. Hale’s certificate of title, defendants asserted a claim to the disputed tract. They contend that title to the disputed tract was indefeasible because the time within which to amend the certificate had long passed and that plaintiffs’ predecessors, served with notice of the registration proceedings, chose to default and permit title to be registered in the name of Anderson, defendants’ predecessor in title.

Plaintiffs argue that title to the disputed tract, despite the conclusiveness of a registration certificate, can be restored to them pursuant to the provisions of § 508.71, subd. 2, or by imposing a constructive trust upon defendants, as the trial court did.

We have recently reviewed the underlying purposes of our title registration law in Konantz v. Stein, 283 Minn. 33, 167 N. W. 2d 1 (1969), and in Moore v. Henricksen, 282 Minn. 509, 165 N. W. 2d 209 (1968).

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Bluebook (online)
211 N.W.2d 778, 297 Minn. 387, 1973 Minn. LEXIS 1104, Counsel Stack Legal Research, https://law.counselstack.com/opinion/estate-of-koester-v-hale-minn-1973.